Please enable JavaScript.
Coggle requires JavaScript to display documents.
Forms of Business Ownership 1* (Partnerships (Cons:red_cross: -unlimited…
Forms of Business Ownership 1*
Partnerships
Cons:red_cross:
-unlimited liability
-management disagreements
-lack of continuity
-frozen investments
2 or more people who get together to start a business :star:
No limit in a partnership:unlock:
Pros:check:
-ease of startup
-availability of capital and credit
-personal interest
-combined business
-retention of profits
-no special taxes
Two types of partners :silhouettes:
General partners: full or share responsibility
Limited partners: investors
An example: Financing oil and gas
Partnership Agreement :pen:
Contract between 2 or more people who want to start a business and make profit
:explode:Examples of Partnership Businesses:fire:
-Microsoft
-Google
-Apple Inc.
-Twitter
-Hewlett-Packer
-Ben&Jerry's
-eBay
-Intel
-Protector & Gamble
-Yahoo
CORPORATION
PROS:
-Limited Liabilitiy
members of company cannot be held personally liable
-Shareholder protection
Shareholders protect themselves from agreements and by laws.
-Protection from legal Liability
Limited liability over the business' debts and activities, must follow a number of corporation formalities to maintain limited liability
CONS:
-Tax Liability
corporation are taxed on the earning they make
-Time and Cost
preparing documents and delivering them cost time and money
-Heavy Regulations
Entitled force heavy regulations on corporations which can cost money and prevent growth.
-Self Incrimination
Act of exposing oneself by making an accusation, charge, or crime against another.
10 Businesses IHOP, HEB, McDonald's, Amazon. Best Buy, target, Starbucks, Whataburger, Costco, Walmart.
S Corporation
cons:
no more than 100 stockholders
there can be only one class of outstanding stock
there are many
government regulations
many conflicts within the corporation
lack of secrecy
pros:
corporation is taxed as a partnership, avoiding double taxation
limited liability
selling stock
ownership transfer is easy
specialized management
Business examples:
Bonita's Flowers and Gifts
Flower Hut
Cogs
Definition:
A corporation that is taxed as though it were a partnership
side note:
S corporation has the same advantages and disadvantages as corporation, with the only difference that income is taxed only as the personal income of its stocks holders
Sole Proprietorship
Single owner
Right to all profits
-A firm with a single owner who has right for all profits
-Self employed prorietor
Public service
Examples:
Roosters Barbershop
McAllen Farmers Market
-Simplest form of business
*Public announcement
Example:
Gus Tailor Shop
Clarks Shoe Polish
*Owners simply opens for business
*Taking out and ad announcing of availability
Example:
Martinez Auto Air
Two Brother Trim Molding
Examples:
Taqueria Marie
Castro's Plumbing
-Unlimited liability for the firms loses and debts
Lack of Business
Examples
Pericos Drive Thru
Treats Salad and Snack Lounge
Lack Money
Examples
Snow Hut
Warrior Repair
Limited Resources
Example
Guzman's Landscaping
Matamoros Taqueria
Limited Liability Company (LLC)
Business Structure Composed of a Board or a Group of Individuals.
LLC protects the business owners of any personal liability 7 business conduct
when it comes to the business, there is a legal protection that separates the individuals as two different entities.
LLC requires board of directors or partners in order to be filed as a Limited Liability Company
other variables would be a PLLC which usually consists of professionals such as lawyers, doctors.
PROS
Avoid double taxation
Management Availability
No restriction on the amount of owners
Fewer IRS tax regulatios
CONS
Self employment tax
Consequence of member turnover
Higher legal expenses
Pros
Cons
-
